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Milk Quotas Benefit or Constraint Why a Common Agricultural Policy

Milk Quotas Benefit or Constraint Why a Common Agricultural Policy The Common Agricultural Policy has tried to address a host ofissues including security of food supply, stable prices for farmers andconsumers, preservation of the environment and maintenance of links withthe rest of the European economy. In 1984, the EC was forced to takesteps to curtail surplus milk production which its policies hadinitially encouraged. Milk quotas were introduced. However, as with manyCAP instruments, the outcome of policy implementation has been theopposite to that which was expected. The overall effect has been todiscourage production efficiency and the development of any kind ofcompetitive edge. The limitations of quotas are leading to industrypolarization, with large producers getting larger at one end, andincreasing numbers of smaller producers, unable to achieve the scale tosurvive, at the other. Suggests that whatever new or revised national orEC policy measures are introduced, price will ultimately control thefortunes of the dairy sector whether or not quotas remain a toolto control supply. Concludes by asking whether the sale of milk haschanged from an agricultural issue to a social one, as increasingnumbers of small farmers require income support as a direct result ofthe quota scheme. Should quotas continue or should a completely newstrategy be devised to promote an industry able to compete favourablywith producers on a global scale in the future http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png British Food Journal Emerald Publishing

Milk Quotas Benefit or Constraint Why a Common Agricultural Policy

Corbett, David
British Food Journal , Volume 94 (5): 3 – May 1, 1992
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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0007-070X
DOI
10.1108/00070709210012777
Publisher site
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Abstract

The Common Agricultural Policy has tried to address a host ofissues including security of food supply, stable prices for farmers andconsumers, preservation of the environment and maintenance of links withthe rest of the European economy. In 1984, the EC was forced to takesteps to curtail surplus milk production which its policies hadinitially encouraged. Milk quotas were introduced. However, as with manyCAP instruments, the outcome of policy implementation has been theopposite to that which was expected. The overall effect has been todiscourage production efficiency and the development of any kind ofcompetitive edge. The limitations of quotas are leading to industrypolarization, with large producers getting larger at one end, andincreasing numbers of smaller producers, unable to achieve the scale tosurvive, at the other. Suggests that whatever new or revised national orEC policy measures are introduced, price will ultimately control thefortunes of the dairy sector whether or not quotas remain a toolto control supply. Concludes by asking whether the sale of milk haschanged from an agricultural issue to a social one, as increasingnumbers of small farmers require income support as a direct result ofthe quota scheme. Should quotas continue or should a completely newstrategy be devised to promote an industry able to compete favourablywith producers on a global scale in the future

Journal

British Food Journal – Emerald Publishing

Published: May 1, 1992

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